Mexico's Pemex oil firm posts $17.7 billion loss28 february 2015, 11:34
Mexico's state-owned energy firm Pemex posted a $17.7 billion loss for 2014 on Friday, hit by falling crude prices, fuel thefts by gangs and the peso's drop against the dollar, AFP reports.
The annual loss was 55 percent steeper than in 2013, the company said in a results statement.
In the fourth quarter of last year, the firm posted a $7.8 billion loss, with crude production falling to 2.36 million barrels per day, a 6.5 percent drop from the same period in 2013.
The dismal results come as Pemex is set to lose its monopoly on oil and gas drilling in Mexico following last year's passage of a historic energy reform bill, which opens the sector to foreign investment for the first time since 1938.
The company, which provides a third of Mexico's tax revenue, said its performance was affected by a 27.9 percent slide in the average price of Mexico's crude mix for export.
The dollar's appreciation against the peso was also a factor.
"Moreover, the theft of fuels has an impact on costs and expenses for operations. With an increase in that activity, there is a greater effect on financial results," the company said.
Last week, Pemex said it would stop shipping ready-to-use gasoline and diesel through pipelines across the country after more than $1 billion worth of fuel was stolen by gangs in 2014.
The company has also decided to suspend some deep water oil exploration projects and plans to slash jobs.
The government, however, is still planning to hold the first auction since the energy reform. In July, it will choose a winner for shallow-water projects.
The fall in international oil prices has also forced the Mexican government to cut its 2015 budget and cut programs, including a $3.7 billion bullet train project.